2012 Annual ReportT H E N AT I O N A L I N S U L AT I O N A S S O C I AT I O N

SuccessA PATHWAY

TO

Front Row: Tim Stout, Hudson Bay Insulation Company; Matt Caldwell, Caldwell Insulation, Inc.; Alec Rexroat, M&O Insulation Co.; Ron King, NIA Past President and

Consultant; Roger B. Crawford, Low Country Insulation, Inc.; Rick Smith, E.J. Bartells; David Dzina, Selle Insulation Co.; J. Kenneth Freeman, Petrin Corp.;

Joe Leo, Atlantic Contracting & Specialties, LLC; John Lamberton, Irex Contracting Group

Back Row: Darrel Bailey, Performance Contracting, Inc.; Mark Duppler, Bay Industries, Inc.; Steve Luse, Luse Thermal Technologies; Dan Bofi nger, Superior Plus

Construction Products Corp. (Winroc SPI); J. David Gottlich, Basic Industries, Ltd.; Doug Bolen, Knauf Insulation; Jim Gribbins, Gribbins Insulation Company, Inc.;

Roddy Davoud, Old Dominion Insulation, Inc.; Kartik Patel, Armacell

Not Pictured: Gary Auman, Dunlevey, Mahan & Furry; Michele M. Jones, NIA Executive Vice President/CEO; Wayne W. Killion, Jr., Shook & Fletcher Insulation, Co.;

Mark Reed, Zampell Companies

N AT I O N A L I N S U L AT I O N A S S O C I AT I O N12100 Sunset Hills Road, Suite 330, Reston, VA 20190

2012–2013 Board of Directors

Leadership Message ...............................................................2

Mission and Board of Directors ...............................................3 Associati on Organizati on Chart .................................. 3 Mission Statement...................................................... 3

Membership ...........................................................................4Acti ve Members by Revenue Category ...................... 4

Members by Membership Type ................................. 4 Union/Merit Contractor Demographics ..................... 4

NIA Committ ee Structure .......................................................5Industry-Specifi c Operati ng Committ ees ................... 5

General Operati ng Committ ees ................................. 6 Standing Committ ees ................................................. 7

Products and Services .............................................................8Products ...................................................................... 8

Top Selling Items and Member Favorites ................... 8 Services and Other Resources .................................... 8

Communicati ons ....................................................................8BRITE Task Force ......................................................... 8Websites ..................................................................... 9

Social Media ............................................................... 9 E-News Bulleti n ........................................................... 9

Publicati ons ..........................................................................10 NIA News .................................................................. 10 Insulati on Outlook ................................................... 10

Foundati on for Educati on, Training, and Industry Advancement ...................................................11 Outreach and Awareness ......................................... 11 Mechanical Insulati on Educati on and Awareness Campaign (MIC) ........................ 11 Capitol Hill Legislati ve Strategies, Acti ons, and Initi ati ves ....................................... 12

Training and Educati on .........................................................14

Meeti ngs ..............................................................................16 NIA Annual Conventi on ............................................ 16 Conventi on Sponsors ................................................ 17 2012 Committ ee Days .............................................. 18

Awards .................................................................................18 2011 Theodore H. Brodie Disti nguished Safety Award Winners ...................................... 18 NIA President’s Award .............................................. 20

NIA Financials 2011–2012 .....................................................21

Staff and Consultants……………………………………………… ............21

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Table of Contents2012 a

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Dear NIA Members,

NIA achieved many exciting accomplishments in 2012, and we are proud to share them with you. 2012 was a year of great educational opportunities for our members, including sessions at our Annual Convention and Committee Days meeting, the Mechanical Insulation Education and Awareness Campaign (MIC) E-Learning Modules, training and free marketing materials on the Mechanical Insulation Assessment and Design Tools Simple Calculators, topics of interest covered in Insulation Outlook articles, and—an important milestone—NIA’s Foundation for Education, Training, and Industry Advancement’s certifi cation of the 1,000th Certifi ed Insulation Energy Appraiser! In addition to technical training, NIA offered members updates on safety best practices and legal issues of concern to our industry, along with insight into how to use social media to grow their businesses. NIA also worked to educate those outside our immediate membership about the value of mechanical insulation. The MIC produced statistical data for the industry, providing free and easy-to-use tools to help our members educate decision makers about purchasing or specifying insulation. On Capitol Hill, despite this year’s gridlock, we continued to meet with legislators and their staff, working on the Mechanical Insulation Tax Incentive and a greater understanding of insulation’s benefi ts. All of these efforts promoted the message that mechanical insulation is environmentally sound—an important consideration as the world focuses on “green” and sustainable practices. None of our accomplishments would be possible without our members’ participation and dedication. NIA strives to provide a voice to our industry—one voice, one industry—and we hope you are pleased with last year’s results. We thank you for your continued support and look forward to building on our success together in 2013.

Sincerely,

Michele M. Jones, CMPExecutive Vice President (EVP)/Chief Executive Offi cer (CEO)

Rick SmithNIA President

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Sincerely,

Leadership Message

NIA is a not-for-profi t organization representing all facets of the commercial, indus-trial, and mechanical insulation industry. NIA is led and paid for by its members, and it operates through a committee structure. These committees and various task forces review and assess issues and recommend actions to NIA’s Board of Directors. Approved actions are then carried out by staff. NIA’s membership consists of both merit (open shop) and union contractors, distributors, laminators, fabricators, and manufacturers. These companies provide thermal insulation, insulation accessories, and components to the commercial, mechanical, and industrial markets throughout the nation. Since 1953, the Northern Virginia-based association has been the voice of the insulation industry, dedicated to keeping the commercial and industrial insulation industry up to date on the latest industry trends and technologies.

Mission and Board of Directors

Mission Statement

NIA’s mission is to increase the success and professionalism of its membership through:• Strengthening and developing

the insulation industry;• Elevating the image of the

standards of the industry;• Keeping members informed

of important industry-related developments;

• Serving as an effective industry representative with outside groups, such as government and labor.

Associati on Organizati on Chart

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NIA’s Board of Directors 2012–2013

PresidentRick Smith, E.J. Bartells

President-Elect Roger B. Crawford, Low Country Insulation, Inc.

Secretary/Treasurer David Dzina, Selle Insulation Co.

Assistant TreasurerJ. Kenneth Freeman, Petrin Corp.

Immediate Past PresidentAlec Rexroat, M&O Insulation Company

Regional RepresentativesJim Gribbins, Gribbins Insulation Company, Inc. (CSIA)Joe Leo, Atlantic Contracting & Specialties, LLC (ESICA)Steve Luse, Luse Thermal Technologies (MICA)Roddy Davoud, Old Dominion Insulation, Inc. (SEICA)J. David Gottlich, Basic Industries, Ltd. (SWICA)Tim Stout, Hudson Bay Insulation Company (WICA)

At-Large RepresentativesDarrel Bailey, Performance Contracting, Inc.Dan Bofi nger, Superior Plus Construction Products Corp. (Winroc SPI)Matt Caldwell, Caldwell Insulation, Inc.Mark Duppler, Bay Industries, Inc.John Lamberton, Irex Contracting GroupMark Reed, Zampell Companies

Associate RepresentativesDoug Bolen, Knauf InsulationKartik Patel, Armacell

Past President AdvisorsWayne W. Killion, Jr., Shook & Fletcher Insulation Co.Ron King, NIA Past President and Consultant

CounselGary Auman, Dunlevey, Mahan & Furry

NIA Executive Vice President/Chief Executive Offi cer Michele M. Jones, CMP

NIA Standing and

OperatingCommittees

NIA Staff

NIA EVP/CEO

ExecutiveCommittee

Board ofDirectors

Association Members

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N I AThe voice of the insulation industry since 1953.

NIA is the voice of contractors, manufacturers, distributors, fabricators, metal building laminators, and others in the commercial, industrial, and mechanical insulation indus-try. Membership in NIA is annual. In 2012, NIA represented 351 member companies, as well as 357 branch locations of those companies. NIA members lead the association through a committee structure. In 2012, thirteen committees met to fulfill their purposes and objectives, including reviewing issues and recommending actions to NIA’s Board of Directors.

Active Members by Revenue Category

Active Members (Contractors, Distributors, Laminators, and Fabricators) by Size (Annual Revenue in Millions)Contractors, distributors, fabricators, and laminators represent 83 percent of NIA’s total membership. Of these members, 76 percent have annual sales of $6 million or less.

Revenue categories of the 290 active members:

Members by Membership Type

Member Demographics:

Union/Merit Contractor Demographics

$0-3 Million 55%$3-6 Million 21%

$6-10 Million 9%$10-15 Million 4%

$15-20 Million 3%$20-30 Million 5%

$30+ Million 3%

Contractor 63.5%

Distributor 10%Fabricator 5.4%

Laminator 3.7%

Associate 14%

Consultants/Manufacturers Reps. 2%Intl./Holding 1.3%Associate Supplier 0.3%

Union 45%Merit 55%

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Membership

Industry-Specific Operating Committees

Associates CommitteeChairman: Doug Bolen, Knauf InsulationVice Chairman: Alan Shepherd, ArmacellSecretary: Dave Cox, Owens CorningThe Associates Committee, composed of NIA’s manufacturers, manufacturers’ representatives, and associate suppliers, strengthens and expands the insulation industry through education, technical assistance, and association membership growth. In 2012, the committee:• Reviewed and updated the Manufacturer by Product List. Updates were

provided to the Mechanical Insulation Design Guide (MIDG) on the National Institute of Building Sciences (NIBS) website and published in the NIA Membership Directory & Resource Guide.

• Discussed the concept of insulation versus PVC pipe, with the committee agreeing to have consultants write a white paper that appeared in Insulation Outlook.

• Conducted a survey of committee members at the 2012 Convention to gain a better understanding of the value members realize in participation in the committee and what topics they would like to see discussed at future committee meetings. Forty-seven responses were received.

• Acted on the survey results, giving a presentation on the Simple Calculators on the MIDG website at the 2012 Committee Days meeting.

• Reviewed the Craft Training DVDs and agreed to work with staff on developing a plan to update the DVDs.

• Provided input to the Health and Safety Committee in the development of an Associate Member Theodore H. Brodie Distinguished Safety Award Application, available to all Associate Members in 2012.

Distributor/Fabricator CommitteeChairman: Brian Farnsworth, E.J. Bartells Vice Chairman: Ted McNabb, Insulation Fabricators, Inc.The Distributor/Fabricator Committee promotes the value of the distributor/fabricator to the mechanical insulation industry, helps grow the industry, and provides ongoing education and training to distributor/fabricator members. In 2012, the committee:

• Discussed which topics would be of interest for committee members and the guest speakers that would be able to address these topics.

• Hosted a panel on Credit and Accounts Receivable tools where the panelists provided information about the tools that are available to assist companies with timely collections of money owed.

• Developed a task force to review the current content on NIA’s website specifically for Distributors and Fabricators and determine what additional information can be posted.

Merit Contractor CommitteeChairman: Mark Reed, Zampell CompaniesVice Chairman: J. Kenneth Freeman, Petrin Corp.The Merit Contractor Committee promotes the growth of the industrial and commercial merit contractor through education, training, and network exchange. In 2012, the committee:• Updated committee members on current and pending legislation impacting

merit contractors.• Heard a presentation from committee member Peter Gauchel (L&C Insulation,

Inc.) about the value of implementing the Contren/Wheels of Learning training program in member organizations. The information was well received and will be presented as a webinar in the future.

• Re-elected Mark Reed as chair and J. Kenneth Freemen as vice chair of the committee at the 2012 Convention.

• Heard Roger Crawford’s presentation on how to build business and communicate the value of mechanical insulation through the use of the Simple Calculators on the MIDG website.

Metal Building Laminators CommitteeChairman: Mike McLain, Bay Industries, Inc.The Metal Building Laminators Committee is composed of laminators of metal building insulation who are dedicated to developing and promoting industry standards and educational programs that will help members become more professional, productive, and profitable. In 2012, the committee:• Reviewed the new American Society for Heating, Refrigerating, and Air-Condi-

NIA Committee Structure

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tioning Engineers (ASHRAE) 90.1-2010 Standard and related test results for prescriptive roof envelope assemblies performed by laminator member companies

• Submitted a letter to ASHRAE in support of 90.1 addendum AB, which would add the R 19 + R-11 Filled Cavity system to Table A2.3 in 90.1-2010

• Reviewed a calculator on the MIDG website• Discussed updating the website code map at www.insulatemetalbuildings.org,

now that the ASHRAE 90.1 tables are finished, as well as possibly adding training videos and freshening up the site with more graphics and less text

• Worked on white papers to educate legislators and others about metal building insulation lamination

• Began conducting a review of existing web pages, marketing materials, and resources

Union Contractor Committee Chairman: Steve Luse, Luse Thermal TechnologiesVice Chairman: John Lamberton, Irex Contracting GroupThe Union Contractor Committee promotes the growth of industrial and commercial union contractors through education, training, productivity enhancement, and strong union relations. In 2012, the committee:• Updated the committee’s Purposes, Objectives, and Actions• Welcomed leaders of the International Association of Heat and Frost Insulators

and Allied Workers at each meeting, who updated the committee on issues such as the Labor Management Cooperative Trust and other issues affecting union contractors

• Discussed market conditions in each region of the country• Welcomed guest speaker Kathy Crosby from C2 Consulting, Inc., who gave a

45-minute presentation about a foreman training program developed through WICA being offered to union contractors

General Operating Committees

Health and Safety CommitteeChairman: Jason Heath, Zampell Companies Vice Chairman: Randy Wheeler, F&H Insulation, Inc.

The Health and Safety Committee is committed to the health, safety, and welfare of its members, customers, and the insulation industry. Through professional safety leadership, the committee actively promotes the highest standards of safety and health excellence to ensure a safe working environment. In 2012, the committee:• Provided updates regarding the latest Occupational Safety and Health

Administration (OSHA) issues• Selected the safety award process to recognize companies for 2011, and

changed the 2011 award levels to platinum, gold, silver, and bronze, rather than first, second, and third place. This allows more than one applicant to win in each category, thus encouraging greater member participation (please see page 18 for a list of award recipients)

• Developed an Associate Member application to be implemented during the 2012 safety award process

• Began reviewing and updating the benefits of participation in the safety award process to provide additional detail in the response letter provided by legal counsel to all applicants

Membership CommitteeChairman: David Dzina, Selle Insulation Co.Vice Chairman: Steve Brown, K-FLEX USA, LLCThe Membership Committee represents all member types, identifies and recruits potential member companies, increases awareness of membership benefits, and encourages participation by NIA members. In 2011, the committee:• Continued development of the member testimonial program• Finalized NIA’s membership marketing brochure• Assisted staff with calls to members to encourage membership renewal and

promote the value of NIA membership and participation in the association• Provided amenities to new members and first-time attendees at the 2012

NIA Convention• Held a member orientation/reception for new and current NIA members at the

2012 Annual Convention; Chairman David Dzina updated members on all the benefits included in their NIA membership

• Finalized a video that explains who NIA is, the industry we serve, who its members are, and why potential members should join NIA

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NIA Committee Structure, continued

• Drafted a flyer of talking points for distributor members to use when recruiting new members

Technical Information CommitteeChairman: Mike Resetar, ArmacellVice Chairman: Allen Dickey, Pittsburgh CorningSecretaries: Richard Berry, Nomaco Insulation (January–April); and Gordon Hart, Artek Engineering (April–December)The Technical Information Committee (TIC) serves as a forum for identifying and addressing technical issues confronting NIA members. In 2012, the committee:• Met four times to review technical materials for NIA and

Insulation Outlook magazine • Provided technical assistance to NIA’s partners and members • Reviewed all technical articles for the eleven issues of Insulation Outlook

magazine and suggested topics for future issues• Reviewed and updated the Insulation Science Glossary, Guide to Insulation

Product Specifications, and Insulation Materials Specification Guide • Reviewed the products and services offered by NIA and made suggestions

for 2013 offerings• Audited the technical accuracy of the Insulation Energy Appraisal Program

(IEAP) NIA training class • Researched topics and speakers for the 2013 Convention technical presentations

Website CommitteeChairman: Roger B. Crawford, Low Country Insulation, Inc. Vice Chairman: Richard Berry, Nomaco Insulation (January–April); and Mark Reed, Zampell Companies (April–December)The Website Committee is responsible for the content and promotion of Insulation.org. It strives to make the website as comprehensive and useful as possible for industry members and the public. In 2012, the committee: • Reviewed website visitor statistics and discussed how to increase the

value of the site to members and non-members• Discussed the need for a funding mechanism to continue efforts to

redevelop the website

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• Discussed additional content that could be published in Insulation Outlook magazine and on the website

• Requested a column that would highlight and share information on high-tech solutions, new social media, apps, and websites that could help small businesses and NIA members, resulting in staff developing the “Social Buzz” column published in NIA News

Standing Committees

2012 Convention CommitteeChairman: Rick Smith, E.J. BartellsThe Convention Committee works with NIA staff to develop and coordinate educa-tion programs and entertainment for the NIA Convention. In 2012, the committee:• Successfully completed the 2012 Convention in Scottsdale, Arizona

(see page 16 for a summary)

Finance CommitteeChairman: Roger B. Crawford, Low Country InsulationThe Finance Committee met in March 2012 to review the Fiscal Year (FY) 2012–2013 budget developed by NIA staff. This budget was approved by NIA membership at the Business Session during the 2012 Convention in Scottsdale, Arizona (see page 21 for the audited state of financials).

Foundation Steering CommitteeCo-Chairmen: Steve Oslica, Pittsburgh Corning and Dan Bofinger, Superior Plus Construction Products Corp. (Winroc SPI)The Foundation Steering Committee develops and implements strategies, and recommends processes to advance and expand the commercial and industrial insulation industry. See page 11 for a complete list of Foundation activities.

Nominating CommitteeChairman: Rick Smith, E.J. BartellsThe Nominating Committee is responsible for identifying and appointing officers of NIA’s Board of Directors, including At-Large Representatives.

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Products

In 2012, fifty-three products and services were offered by NIA in the following categories: Certification and Training, Educational Resources, Health and Safety Products, and Marketing Tools. The ConsensusDOCS catalog, the Insulation Materials Specification Guide, and the Power of Insulation brochure were updated and reprinted, and thirteen new publications were offered. For a complete list of NIA’s products, visit www.insulation.org/products.

Top Selling Items and Member Favorites

• Contren (formerly Wheels of Learning)• National Commercial and Industrial Insulation Standards Manual• Safety Handbook for Distributors/Fabricators• Safety Handbook for Insulation and Abatement Workers• Insulation Estimator’s Handbook

Services and Other Resources

In 2012, NIA offered a number of free services/resources exclusively to members, including:• The NIA Members Only website, featuring committee meeting minutes,

NIA logo for download, and Human Resources Forms and Documents such as employment applications, employee termination forms, evaluations, job descriptions, new employee forms, offer letters, safety checklists, and time-off request forms

• Online Job Board at insulation.org• NIA News, an exclusive member newsletter• A digital version of NIA News• Exclusive meetings and discounts on registration for other events• Insulation Advocate, an update on NIA’s Capitol Hill activities

New and updated online resources include:• Guide to Insulation Product Specifications

• Insulation Science Glossary • Insulation Materials Specification Guide • Manufacturers’ Technical Literature (MTL) Product Catalog• Mechanical Insulation Design Guide (MIDG)• NIA Speaks (online presentation map)

Additional NIA member services provided include special offers and discounts, such as:• Advertising for NIA members in various media outlets, including Insulation

Outlook, the NIA Membership Directory & Resource Guide, and various sponsorship opportunities at Committee Days and Convention

• Associated Resource Group (ARG) discounts for all members’ voice and data service needs, along with a free initial analysis

• Solveras discounts on credit card technology and processing options, along with a free initial analysis

• Limited complementary legal advice about OSHA requirements, regulations, and inspections from NIA’s general counsel—offered on a first-come, first-served basis

BRITE Task Force

NIA President Rick Smith assembled a diverse task force to represent the NIA membership. In May 2012, this task force—termed BRanding Image and Informa-tion Technology (BRITE)—began reviewing the NIA brand to determine if the NIA message was still clear to the industry or if an update was needed to modernize our efforts. The task force began by establishing NIA’s internal and external target audiences. Members of BRITE then conducted a review of new logos and tagline options. Several members volunteered their company’s marketing or graphic design specialist to create new logo designs. The task force is currently reviewing new

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Products and Services

Communications

Communications, continued

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tagline and logo options that clearly state who NIA represents and communicate the value of mechanical insulation.

Websites

www.insulation.orgIn 2012, improvements to the Insulation.org website included:• Posting monthly Insulation Advocate updates and maintaining the archives• Posting NIA and Foundation updates • Adding digital editions of NIA News issues to Members Only

www.InsulationOutlook.comImprovements to the site in 2012 included:• Updating content and the Insulation Outlook articles archive • Creating the 2012 advertisers page

www.InsulateMetalBuildings.orgThis website is designed to provide up-to-date information on energy code compliance for pre-engineered metal building systems, the use of NIA Certified Faced Insulation®, and metal building insulation assemblies and proper installation that comply with the American Society for Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) 90.1 and state energy codes.

www.wbdg.org/midgThe National Institute of Building Sciences, through the National Mechanical Insulation Committee, developed the Mechanical Insulation Design Guide (MIDG) to provide a comprehensive source of information on the design objectives, system selection, installation, and maintenance of mechanical insulation systems in buildings and industrial facilities. In 2012, the site was updated with: • Updated sections that include new standard references and other relevant

technical changes• Updates to the following Simple Calculators:

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1. Energy Loss, Emission Reduction, Surface Temperature, and Annual Return for Equipment (Vertical Flat Surfaces)

2. Energy Loss, Emission Reduction, Surface Temperature, and Annual Return for Horizontal Piping

3. Financial Returns/Considerations 4. Personnel Protection for Horizontal Piping5. Estimate Time to Freezing for Water in an Insulated Pipe6. Temperature Drop for Hydronic Piping7. Temperature Drop for Air Ducts8. Condensation Control for Horizontal Piping

A new section for the five E-Learning Modules was added. The section includes five modules that range between 15–35 minutes in length, for a total of 2 hours. See page 12 for more information.

Social Media

NIA disseminates information through social media websites, including its Facebook page (www.facebook.com/NIAinfo) and NIAInfo and InsulationInfo on Twitter.• NIA currently has 275 people who “like” our NIA Facebook page,

521 Twitter followers for InsulationInfo, and 121 following NIAinfo.• NIA events, products, publications, and activities were promoted through

social media

E-News Bulletin

The E-News Bulletin is a free e-newsletter that provides updates on NIA events, training courses, and products, as well as mechanical insulation industry news. Any-one may subscribe by filling out a short form on www.insulation.org. The subscriber list currently contains more than 2,500 e-mail addresses.

NIA News

NIA News is produced five times per year and is available exclusively to members as part of their dues benefits. In 2012, it was distributed to almost 1,600 NIA members per issue. In addition, a digital edition is offered to members. A link to the digital version of each issue was e-mailed to more than 1,400 members. A new NIA News feature was added: Social Buzz highlights recommended apps, websites, and other online tools that are helpful to members.

Insulation Outlook

Eleven times a year, Insulation Outlook provides practical information about mechanical insulation’s value, uses, applications, and economic benefits to its audience of 11,550 subscribers. Members receive this magazine as part of their membership dues.

CirculationInsulation Outlook was sent to numerous industry-relevant tradeshows and events, such as the 15th Annual Congressional Renewable Energy and Energy Efficiency Expo + Forum, National Association of State Energy Officials (NASEO)/ Association of State Energy Research Institutions (ASERTTI) Energy Policy and Technology Outlook Conference, Construction Specifications Institute (CSI) CONSTRUCT 2012, World Energy Engineering Conference, GlobalCon 2012, West Coast Energy Management Congress, MetalCon International, NASEO’s Annual Meeting, RCI Building Envelope Technology Symposium, Refrigerating Engineers and Technicians Association (RETA) 2012 National Conference and Heavy Equipment Show, regional associations’ annual meetings, and the NIA Annual Convention and Committee Days meetings. Insulation Outlook’s circulation metrics at the end of 2012 were:

Other 5%Members 14%

Insulation End-Users 81%N

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Publications

EditorialA wide variety of editorial topics were covered in forty-two articles during 2012. All the articles were uploaded to the Technical Articles database at www.insulation.org/articles/. In addition, an advertorial section—“NIA Industry Leaders Interview Series: State of the Industry”—focused on members’ industry forecasts and ran in the April/May double issue.

Advertising Insulation Outlook met its 2012 budgeted revenue targets. Insulation Outlook offers individual ads as well as three advertising packages designed to reward frequent advertisers with extra exposure: Select 4, Preferred 7, and Premier 12. Descriptions of the package benefits can be found at www.InsulationOutlook.com/io/pdf/2011_Bonus_Programs.pdf. Our appreciation and recognition go out to the 2012 Premier 12, Preferred 7, and Select 4 advertisers:

Preferred 7 Advertisers Auburn Manufacturing, Inc.Buckaroos, Inc.CertainTeed Corp.Extol of OhioIndustrial Insulation Group, LLCMABI AG

Premier 12 Advertisers Access Plug Flange, Inc.Aeroflex USA, Inc.ArmacellIdeal Tape Co., Inc.Johns ManvilleKnauf InsulationLewco Specialty Products, Inc.No Sweat Valve Wraps, Inc.Owens CorningPolyguard Products, Inc.Rock Wool Manufacturing Co.Venture Tape—GTA-NHT, Inc.

Select 4 AdvertisersAmity Insulation Group, Inc.Avery DennisonK-FLEX USA, LLC

MFM Building Products Corp.Midwest Fasteners, Inc.Performance Contracting, Inc.Proto Corp.Unifrax I, LLC

GripnailPittsburgh CorningRoxul, Inc.

In 2012, NIA’s Foundation for Education, Training, and Industry Advancement continued to promote the mechanical insulation industry to thousands of end users, specifiers, architects, energy managers, plant operators, building owners, facility managers, government agencies, and others.

Outreach and Awareness

Strategic PartnershipsNIA maintained a strong list of 15 strategic industry partners:• The American Institute of Architects (AIA)• American Society of Heating, Refrigerating,

and Air-Conditioning Engineers (ASHRAE)• American Society of Mechanical Engineers (ASME)• The Association of Energy Engineers (AEE) • Association for Facilities Engineering (AFE)• The Construction Specifications Institute (CSI) • The U.S. Department of Energy (DOE)• Energy Future Coalition (Rebuilding America Coalition) • Industrial District Energy Association (IDEA)• Mechanical Contractors Association of America (MCAA)• National Association of State Energy Officials (NASEO) • National Institute of Building Sciences (NIBS)• Plumbing-Heating-Cooling Contractors Association (PHCC)• Refrigerating Engineers and Technicians Association (RETA)• Technical Association for the Pulp and Paper Industry (TAPPI)

Chapter and National PresentationsIn 2012, NIA continued its presentations to strategic partners, both in person and online via webinars and podcasts, on insulation’s value and its role as an energy efficiency technology. The presentations reached more than 600 engineers, specifiers, architects, and other individuals in the U.S. and abroad with significant influence on the design, selection, and purchasing of—and ultimate decision making about—mechanical insulation.

Mechanical Insulation Education and Awareness Campaign (MIC)

In 2012, the Foundation completed its work on the subcontract from the U.S. Department of Energy’s (DOE’s) Industrial Technologies Program to develop a comprehensive Mechanical Insulation Education and Awareness Campaign (MIC). As part of DOE’s efforts to improve energy efficiency of the U.S. industrial and commercial sectors, NIA, worked to design, implement, and execute the MIC. The program’s two key objectives are to: • Educate industry and promote the benefits of mechanical insulation by

providing practical data and case studies outlining potential energy savings provided by mechanical insulation installation.

• Launch an aggressive public education and awareness campaign on the heels of President Obama’s call to action to combat climate change and improve energy efficiency.

To date, this campaign has developed a number of helpful data and tools described in this section.

Simple Calculators In October, NIA presented “Know the Benefits of Your Mechanical Insulation Projects” during a webinar sponsored by the Southern California Gas Company and the Climate Registry. This webinar was specifically arranged for the Southern California Gas Company customer base and NIA members. The webinar demonstrated how to use free, simple, online tools that help evaluate mechanical insulation projects. The presentation included an overview of the Mechanical Insulation Design Guide (MIDG) and simple calculators, which provide an instant snapshot of the benefits of mechanical insulation including energy savings, payback periods, rate of return, net present value, and greenhouse gas emission reductions.

Foundation for Education, Training, and Industry Advancement

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E-Learning ModulesIn February, the E-Learning Modules went live on www.nterlearning.org. These self-paced modules are available 24/7 and were developed as part of the MIC. They are available for free and include:• Module 1: Educational Series Introduction and Defining Mechanical Insulation• Module 2: Benefits of Mechanical Insulation• Module 3: Mechanical Insulation, Science and Technology• Module 4: Mechanical Insulation Design Objectives and Considerations• Module 5: Mechanical Insulation Maintenance

Within the first month of their release they received an average of five out of five stars from users.

Marketing and AdvertisingThe MIC marketing program included an effort that will target both industrial and commercial markets using mechanical insulation. Three professionally printed marketing pieces promoted the Simple Calculators, commercial and industrial data, and the E-Learning Modules. These flyers are currently being circulated throughout Capitol Hill, the DOE, strategic partners (see page 11), the NIA membership, insulation regional associations, and other markets. NIA members were offered twenty-five free copies of each of the three flyers. (NIA Foundation Gold Elite contributors were entitled to receive 100 copies of each flyer.) Members were encouraged to use these flyers to market the value of mechanical insulation and their company’s services.

Capitol Hill Legislative Strategies, Actions, and Initiatives

NIA’s Foundation continued to make huge strides in getting mechanical insulation recognized on Capitol Hill and at the state level as an energy-saving technology. In 2012, the Foundation:• Conducted more than 150 meetings on Capitol Hill to promote H.R. 2866

and S. 1526, the Mechanical Insulation Installation Incentive Act bills.• Participated in a DOE event that unveiled the new National Training and

Education Resource (NTER) educational platform. NIA Past President and

Consultant Ron L. King gave a presentation on NIA’s Mechanical Insulation Education & Awareness E-Learning Series, which is hosted on the platform. Afterwards, the audience watched demonstrations of the learning modules hosted on NTER, including a demo of NIA’s E-Learning series.

• Exhibited at the 15th Annual Congressional Renewable Energy and Energy Efficiency Expo + Forum. NIA and the Alliance set up a tabletop display featuring the benefits of mechanical insulation on energy efficiency. The Simple Calculators also were on display for attendees to use. Representatives from NIA, the International, and The Arnold Agency (one of our lobbying firms) were the only representatives of insulation at the Expo. We discussed the benefits of mechanical insulation with the 525 reported attendees of the Expo—including representatives from government agencies, congressional staffers, and members of the public who have an interest in reducing energy consumption. Three representatives addressed the audience to show their commitment to energy efficiency: Rep. Roscoe Bartlett (D-MD), Rep. Chris Van Hollen (D-MD), and Rep. John Garamendi (D-CA).

• Met with Rep. Tim Ryan (D-OH), an original cosponsor of the Mechanical Insulation Installation Incentive Act, and his Congressional Fellow, Vineet Rajan, about mechanical insulation opportunities within the Department of Defense.

• Met with Rep. Peter Visclosky (D-IN) and his staff member Joe DeVooght, to provide additional information about the MIC so that he could encourage the DOE to continue funding the program. Rep. Visclosky expressed support for our efforts to secure more federal money for the MIC.

• Worked to get mechanical insulation included in existing energy bills. As a result, the FY13 Senate Energy and Water Development Appropriations Bill included language for the mechanical insulation industry, stating specifically that “The Department is encouraged to utilize $500,000 to continue the mechanical insulation campaign (MIC) that was initiated in fiscal year 2010 and is ongoing with industry cost-sharing and collaborating on content.” In addition, the House’s Appropriations Committee included language in its Energy and Water Development Appropriations bill that reads, “The Department is encouraged to continue its efforts furthering improvements in mechanical insulation, an area which has the potential to yield significant energy and

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Foundation for Education, Training, and Industry Advancement, continued

cost savings for the industrial, commercial, and manufacturing sectors.”• Ensured that mechanical insulation was a hot topic during Capitol Hill’s

High Performance Building Week, held May 14 to 19 in Washington, DC. This annual event features briefings, meetings, and other educational outlets designed to showcase and promote the good work being done to provide better buildings and mitigate our impact on the environment. NIA worked with several representatives, including Rep. Daniel Lipinski (D-IL) and Rep. Don Manzullo (R-IL), to help draft speeches that focused on the importance of mechanical insulation and its use in high-performance buildings. On May 16, Rep. Manzullo spoke about mechanical insulation to members of Congress: “One of the easiest and most cost-effective ways to improve building performance is to ensure that mechanical insulation systems are properly installed. While most of us think that insulation is only for walls and attics, mechanical insulation is a vital component for commercial, industrial, and educational applications.”

• Assisted the Department of the Army by providing information on our energy assessment services and how they can be used to identify energy savings within Army facilities.

• Presented a podcast, hosted by Building X, entitled HVAC360. This podcast covers the heating, ventilating, and air conditioning (HVAC) industry through the entire lifecycle of a building. NIA discussed an array of topics related to mechanical insulation in the commercial market segment.

• Submitted testimony to the House Committee on Appropriations, Subcommittee on Energy and Water Development, asking them to support a programmatic increase of $500,000 in FY12–13 for the DOE’s Advanced Manufacturing Program to continue to expand the national mechanical insulation education and awareness program.

Mechanical Insulation Installation Incentive Act H.R. 2866/S. 1526 would create up to a 30% tax deduction to encourage commercial and industrial entities—e.g., manufacturing facilities, office buildings, schools, hospitals, power plants, hotels, and universities—to go beyond minimum mechanical insulation requirements in new construction and retrofit projects, and increase their maintenance activities. Conservative estimates indicate that over a

five-year implementation period, this legislation could save $35 billion, reduce 170 million metric tons of CO2, and create more than 25,000 jobs for skilled craftsmen in all fifty states within weeks or months, not years.

H.R. 2866• Ended 2012 with a total of 77 House of Representatives co-sponsors:

54 Democrats and 23 Republicans.

S. 1526• Ended 2012 with a total of 5 Senate co-sponsors: 3 Democrats and 2 Republicans

Strategic Partnership Collaborations• Ron King, NIA Past President and Consultant, continued serving as chairman

of the National Institute of Building Sciences’ (NIBS’) Consultative Council in 2012, having previously served as vice chair. The Consultative Council advises and supports the Institute by making recommendations for presentation to the President of the United States on developing and applying science and technology to improve the built environment. Mr. King also served as chairman of the National Mechanical Insulation Committee, and thus a member of the NIBS Coordinating Council.

• NIA joined more than 150 construction companies in signing an ad paid for by the Pew Charitable Trusts urging Congress to put one million Americans back to work by “harnessing the heat” and increasing industrial energy efficiency.

• As part of our Alliance, the International Association of Heat and Frost Insulators and Allied Workers represented mechanical insulation to the Labor Policy Summit, held in January 2012. The white paper for the meeting included “having a mechanical insulation energy review of the mechanical rooms of government facilities” in the State Opportunities list in the “Vision for the Future” section, which gives governors ideas and opportunities to consider. Supporting the Mechanical Insulation Installation Incentive Act was mentioned in the Federal Opportunities section.

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External Communications As part of the Foundation’s activities, NIA:• Developed and updated numerous pieces of informational collateral for

“leave-behind” meeting packets on Capitol Hill. • Made four presentations at the World Insulation and Acoustic Congress

(WIACO) in Paris, France including:• NIA Past President Ron King presented a session on the Mechanical

Insulation Assessment and Design Tools Simple Calculators, as well as a session on the results of energy assessments entitled “Mechanical Insulation Energy Appraisal Results—An Excellent Investment Opportunity.”

• Current NIA President Rick Smith presented a session on “Mechanical Insulation Challenges and Opportunities with Energy— Building Simulation Modeling and the Energy-Water Nexus.”

• NIA EVP/CEO, Michele Jones, presented a session on the most recently launched Mechanical Insulation Educational and Awareness E-Learning Series.

Member Communications In 2012, NIA kept members informed about its activities, especially Capitol Hill initiatives, by:• Publishing five articles about our legislative activities and the increased

support from Capitol Hill for mechanical insulation in NIA News• Publishing three articles about the efforts in Insulation Outlook magazine• Publishing 10 editions of the Insulation Advocate e-newsletter• Hosting the first annual Foundation stakeholders meeting at the

2012 Convention• Updating all six regional insulation associations and the Thermal Insulation

Association of Canada (TIAC) on NIA activities during those organizations’ annual meetings

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Training and Education

NIA offered three training programs to members and organizations that make decisions about purchasing mechanical insulation: the Insulation Education and Awareness course, the Insulation Energy Appraisal Program (IEAP), and the National Insulation Training Program (NITP).

• Insulation Education and Awareness Course: This half-day course introduces the concept of mechanical insulation and how it can reduce energy consumption and greenhouse gas emissions, be part of a safety program, increase manufacturing productivity, eliminate or at minimum reduce corrosion under insulation, and provide a quick return on investment.

• Insulation Energy Appraisal Program: This two-day accredited class teaches students how to review mechanical system specifics and use the 3E Plus® Version 4.0 software to determine the optimal insulation thickness and corresponding energy and dollar savings for a project. Students who attend the course and pass the exam become Certified Insulation Energy Appraisers. All current NIA-member certified appraisers are listed on www.insulation.org. Based on an update of the 3E Plus software for Version 4.1, the curriculum for the IEAP class was reviewed and revised to include streamlined functionality between support documents and the 3E Plus software, and the inclusion of additional resources such as the Simple Calculators and E-Learning Modules that appear on the MIDG website.

• National Insulation Training Program: The NITP class reviews and reinforces why we insulate mechanical and process systems, presents a process for designing an insulation system, and familiarizes and provides students with information and tools that make insulation system design and specification easier and more accurate.

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Training and Education

In 2012, NIA saw continued interest in training programs:• NIA held two Insulation Education and Awareness courses—107 students. • NIA held 12 IEAP courses—210 new appraisers certified.• There are 1,082 Certified Insulation Energy Appraisers

as of December 31, 2012.

*States with Certified Insulation Energy Appraisers are in blue.

KY

WA

OR

ID

MT

WY

ND

SD

NE

MN

NV

CA

UTCO

KS

OKAR

MO

IA

WI

IL

TN

INOH

MI

FL

SC

NC

VAMD

DE

NJ

CTRI

MA

PA

NY

VT

NH

ME

LA

MS

AL GA

AZ

AK

NM

TX

HI

WV

Additional Countries with Certified Insulation Energy Appraisers

• Columbia• Mexico• West Indies• Netherlands• Brazil• Canada

States with Certified Insulation Energy Appraisers*

NIA President Rick Smith and NIA EVP/CEO Michele M. Jones celebrate with members during a reception at the

2012 Committee Days meeting.

The National Insulation Association Reaches 1,000 Certified Insulation Energy Appraisers!

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Meetings

NIA Annual Convention

Hyatt Regency Scottsdale Resort and Spa at Gainey RanchScottsdale, ArizonaApril 18–21, 2012

In April, NIA held the 57th Annual Convention in Scottsdale, Arizona, with the theme “Together We Succeed: Are You In?” NIA members and guests came together to gain industry knowledge from educational sessions and committee meetings, and connect with business partners and colleagues at multiple networking events, including the VIP/First-Timers Reception; Welcome Reception; Appreciation Night; Manufacturers’ Dessert Hospitality Suites; Golf Tournament; and the President’s Gala Reception, Dinner, and Dance. The 2012 Convention had 363 attendees, of which 25 were first time attendees. The 117 Active Members participating included 66 contractors, 28 distributors, 7 fabricators, and 16 laminators. There were 106 manufacturers/consultants, 15 TIAC members, 110 spouses and guests, and 15 oth-ers, including speakers and industry guests.

General Sessions presented at Convention included:• “NIA’s Legislative Update and Review of Industry Programs,” presented by

Ron King, NIA Past President and Consultant and Michele Jones, NIA EVP/CEO

• “CURT—Construction Users Roundtable—An Open Dialog,” presented by Greg Sizemore, executive vice president, Construction Users Roundtable

• “Insurance Solutions for Business Managers and Employers,” presented by Jim Sampson, REBC, RHU, ChFC, CLU, Flood and Peterson Insurance

• “What If and Why Not?” by Keynote Speaker Mike Rayburn

Industry Roundtable topics included:• Safety Best Practices• Social Media – the Next Revolution for Business• Education at Your Fingertips: Introducing the Mechanical Insulation Education

and Awareness E-Learning Series

Technical Paper Presentation topics included:• Factors Influencing the Likelihood of Surface Condensation on Mechanical

Systems Insulation• National Commercial and Industrial Insulation Standards Manual, 7th Edition

Changes• Building Information Modeling

NIA Member Convention Participation

TIAC 4%Other 5%

Spouse/Guest 30%Associate Members 29%

Active Members* 32%

*Active Members include Contractors, Distributors, Fabricators, and Laminators

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2012 Convention Sponsors

NIA extends a special thank you to sponsors, who contributed to the success of NIA’s Annual Convention.

Convention Badge Holder Sponsor: Johns Manville

Convention Bag Sponsor:E.J. Bartells

Hotel Key Card Sponsor:Roxul

VIP and First-Timers Reception Sponsor: Aeroflex USA, Inc.

Convention Journal Sponsor:Avery Dennison

NIA Member Orientation Sponsor: Performance Contracting, Inc.

Golf Tournament SponsorsHole-in-One Sponsor: Knauf Insulation

Longest Drive Sponsor: Johns Manville

Closest-to-the-Pin Sponsor: Proto Corp.

Individual Golf Hole Sponsors:Avery DennisonDyplast Products, LLCGeo V. Hamilton, Inc.HiCube CoatingManson InsulationMorgan Thermal CeramicsNo Sweat Valve Wraps, Inc.RPR Productions, Inc. Superior Plus Construction Products Corp. (Winroc SPI)Venture Tape Corp.

Registration Packet Sponsors:ArmacellKnauf Insulation GmbHPittsburgh CorningPolyguardRoxul, Inc.Venture Tape Corp.

Members Enjoying the Evening Welcome Reception

Members Enjoying the General Sessions Presentations

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Meetings, continued

2011 Theodore H. Brodie Distinguished Safety Award Winners

Congratulations to the following companies, announced as the 2011 winners during the 2012 Annual Convention, for their demonstrated excellence in safety and for instilling strong safety values in their employees.

Contractors

Platinum Winners:• E.J. Bartells, Renton, Washington• F&H Insulation, Inc., Kechi, Kansas• Gribbins Insulation Co., Inc., Evansville, Indiana• hth Companies, Inc., Union, Missouri• L&C Insulation, Inc., La Crosse, Wisconsin• Performance Contracting, Inc., Lenexa, Kansas

Platinum Contractor and Distributor/Fabricator Winners withNIA President Alec Rexroat (far left) and

NIA Executive Vice President/CEO Michele Jones (far right)*

Committee Days

Hyatt Regency RestonReston, VANovember 6–7, 2012 The 2012 Committee Days meeting was attended by 70 members. Operating committees met to reflect on NIA and Foundation accomplishments and discuss market trends, action items, and current and future association activities. Attendees networked during the Tuesday afternoon lunch and reception that evening, and met each day in committee meetings. Educational opportunities included:• Matt Keelen and Steve Borg from The Keelen Group, a governmental affairs

firm in Washington, DC, provided an overview of the congressional and presi-dential elections and their impact on NIA’s strategies in Washington and the overall political landscape of Congress.

• The Associates Committee and Merit Contractor Committee members learned more about the Simple Calculators and how to use them to communicate the value of mechanical insulation.

Awards

2012 Committee Days Luncheon SpeakerMatt Keelen of The Keelen Group

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Gold Winners:• Advanced Energy Solutions, LLC, Parkersburg, West Virginia• Advanced Industrial Services, Walbridge, Ohio• Advanced Specialty Contractors, LLC, Aston, Pennsylvania• API, Inc., St. Paul, Minnesota• Atlantic Contracting and Specialties, LLC, Franklin, Massachusetts• Cornerstone Services Group, LLC, Kansas City, Missouri• Dover Insulation, Inc., Marion, North Carolina• Hudson Bay Insulation Co., Seattle, Washington• New England Insulation Co. Inc., Canton, Massachusetts• New States Contracting, LLC, Sayreville, New Jersey• Summit Contracting, LLC, Salt Lake City, Utah• Thermal Solutions–Ohio, Inc., Proctorville, Ohio• Zampell Companies, Newburyport, Massachusetts

Gold Contractor and Distributor/Fabricator Winnerswith NIA President Alec Rexroat*

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Silver Contractor and Distributor/Fabricator Winnerswith NIA President Alec Rexroat*

Silver Winners:• ABMECH, Inc., West Homestead, Pennsylvania• Basic Industries, Ltd., Corpus Christi, Texas• Global-Therm, Goodman, Missouri• Scandvic Enterprises, Inc., Colorado Springs, Colorado

Bronze Winners:• Brand Energy Solutions, LLC, Pasadena, Texas• Building Specialties, Inc., Houston, Texas• Insulating Services, Inc., Charlotte, North Carolina• L.C. Insulations, Inc., Lititz, Pennsylvania• Luse Thermal Technologies, Aurora, Illinois• Nicholas Insulation Services, Inc., Mobile, Alabama

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Bronze Contractor and Distributor/Fabricator Winners with NIA President Alec Rexroat*

Distributors/FabricatorsPlatinum Winner:• E.J. Bartells, Renton, Washington

Gold Winner:• Pacor, Inc., Bordentown, New Jersey

Silver Winner:• Insulation Fabricators, Inc., Hammond, Indiana

Bronze Winners:• Distribution International S.W., Inc., Houston, Texas• Shook and Fletcher Insulation Co., Birmingham, Alabama• Superior Plus Construction Products, Corp. (Winroc SPI),

Lancaster, Pennsylvania

Awards, continuedNIA President’s Award

From time to time, a NIA President is so impressed by a member’s contribution to the mechanical insulation industry and to NIA that he feels that person deserves unique recognition. At the 2012 NIA Annual Convention, 2011–2012 NIA President Alec Rexroat presented Peter Gauchel with the NIA President’s Award. Only 20 people have received this honor since 1970. Peter Gauchel was presented the award because, as a small busi-ness owner, he has become a leader in the industry, demonstrating that participation brings great value. He has shown passion for this industry; and even through trying times, he has always represented the industry, his business, and himself with the utmost integrity. Peter has helped advance the industry by chairing numerous committees, sitting on several industry boards, and serving as president of both the Midwest Insulation Contractors Association and NIA. He is a huge advocate of education and training, and highlights safety as a top priority. Peter is an inspiration to our industry and is a shining example of hard work, dedication, and success.

*Photos show the winners that were present at the award ceremony during the 2012 Annual Convention

NIA President Alec Rexroat Presented Gauchel with

the award.

NIA President’s Awardrecipient, Peter Gauchel

Revenue Membership Dues $661,258.00Convention $361,451.00Publications & Communications $787,359.00Educational Programs $28,478.00Net Investment Income $(10,740.00)Total Revenue $1,827,806.00

Expenses Association Activities $605,646.00Convention $315,294.00Publications & Communications $714,989.00Educational Programs $11,680.00Total Expenses $1,647,609.00

Foundation

RevenueFoundation Revenue $568,968.002010–2011 Carry Forward $32,247.00 $601,215.00

ExpenseFoundation Expenses $729,590.00

Foundation Revenue 24%Membership Dues 27%

Educational Programs 1%Net Investment Income 0%

Publications & Communications 33%

Convention 15%

Membership Activities 25%

Foundation Expenses 31%Publications & Communications 30%

Convention 13%

Revenue

Expenses

Educational Programs 1%

Michele M. Jones, CMP Executive Vice President/Chief Executive Officer ext. 119, mjones@insulation.org

Kristin V. DiDomenicoVice Presidentext. 115, kdidomenico@insulation.org

Lisa M. ErdeljonAssistant Manager of Membership Servicesext. 113, lerdeljon@insulation.org

Julia BardnellDirector of Meetings and Educationext. 114, jbardnell@insulation.org

Ashley JoswickSenior Manager of Production and Designext. 117, ajoswick@insulation.org

Dawn KirkAdministrative and Programs Assistantext. 124, dkirk@insulation.org

Julie McLaughlinDirector of Publications/Publisherext. 116, jmclaughlin@insulation.org

VacantMarketing/Communications Editorext. 118, editor@insulation.org

Ron KingNIA Consultant and Past President713-409-6097, RonKingRLK@aol.com

Kim KelemenNational Sales Manager The Townsend Group, Inc.301-215-6710, ext. 103, ads@insulation.org

Rachel RitenourAccountant Halt, Buzas & Powell, Ltd.703-464-6422, ext. 121, accounting@insulation.org

Gary AumanNIA General Counsel Dunlevey, Mahan & Furry703-464-6422

NIA AuditorsRoss, Langan & McKendree, L.L.P.

Public and Legislative AffairsThe Keelen Group

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NIA Financials 2011–2012

Staff Consultants

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THE NATIONAL INSULATION ASSOCIATION12100 Sunset Hills Road, Suite 330

Reston, VA 20190

future.ONE

voice,ONE

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